Delivering Sustainability Through Public Procurement: Crossrail Case Study

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1 Delivering Sustainability Through Public Procurement: Crossrail Case Study Mike de Silva, Bechtel Ltd, Crossrail Sustainability Manager & Andrew Eldred, Crossrail Ltd, Head of Employee Relations

2 Crossrail enabling London to grow High Capacity Metro Railway 14.8bn cost 42bn net benefit 118 km length 40 (10 new) stations 24 Trains/hou r 200m journeys pa

3 Abbey Wood Paddington The Elizabeth line Service integration Romford Route Control Centre

4 Defining Sustainability for Crossrail

5 Preparing the supply chain Championing fair payment Use of Project Bank Accounts Supply chain engagement Dedicated business opportunities section on CRL website Meet the contractor Roadshows CompeteFor

6 Opportunities for Suppliers

7 Our Rolling Stock Designed in Derby by Bombardier Assembled in Derby Tested at Old Dalby But components from far and wide: Electrical systems from Sweden Bogies from Germany Brakes from UK Pantographs from UK Other parts from everywhere

8 Tunnelling Under London Tunnelling

9 Material Transport

10 Wallasea Island now

11 Wallasea Island 2019

12 Managing construction impacts Dust and air quality Green walls Dust suppression Diesel Particulate filters Noise Noise barriers Secondary glazing Suitable construction methodologies

13 Carbon Reduction Operation Construction

14 Sustainability of materials

15 Sustainable designs

16 Improving the urban realm

17 Ethical sourcing Modern Slavery Act, 2015 Commodity Sheets Concrete Reinforcing Steel/fibres Mechanical & electrical PPE Fit out materials Timber Stone & paving BES 6001:Responsible Sourcing of Construction Products

18 Road safety initiatives Road Safety Initiatives 4660 drivers from 300+ Contractors 1000 s downloaded Launching Nov 2012 Bi-monthly meetings 24x7 resource 310+ Crossrail Contractors Behavioural Change - Lorry Driver Induction Training - Driver Information Pack - Online Driver Training Contractor Support - Vehicles & Driver Safety Working Group - Contractor online forum (extranet) - Fleet Operator Recognition Scheme 6.4m Spend to date Raising Awareness - Corporate Manslaughter Act Seminars - Exchanging Places Vehicles & Junctions - Vehicle Safety Kit Requirements - Road Safety Mirrors - Vehicle Safety Kit Helpline 23 seminars 375 delegates Pilot completed 6 planned > 4,700 lorries compliant 50+ mirrors installed 9-5 daily support

19 Delivering Skills and Employment Objectives

20 Delivering S&E objectives Examines the role (and limitations) of procurement on the UK s Crossrail project Key themes Historically little support for good S&E practice in UK Specific S&E commitments established for project Implementation not straightforward or universally successful Lessons learned Subsequent developments in UK skills and procurement policies

21 Background: UK public procurement Dismantling of institutional and social constraints on market forces during 1980s and early 1990s Value for money EU public procurement rules Town and Country Planning Act 1990, section 106 Public sector equality duties

22 Background: UK construction S&E Intense cost-based competition Heavy reliance on subcontracting, self employment and immigration Weak sectoral institutions (training, collective bargaining) Uneven investment in skills Low quality of much employer and college-based training Persistent skills shortages and comparatively low productivity Poor industry image and unimpressive diversity record

23 Crossrail: origins of commitments Crossrail Act 2008 obligations and related undertakings Concerns about shortages (especially tunnelling skills) London 2012 Olympic Park construction S&E initiatives Crossrail 2010 S&E Strategy Tunnelling & Underground Construction Academy Local/ unemployed job starts 400 apprentices 350 work placements Diversity

24 Contractual requirements Deliver contractually-binding numerical S&E targets (based on contract value) Job starts, apprenticeships work placements, etc. Advertise all project vacancies through Crossrail Jobs Brokerage Work towards Diversity Works for London standard Involve supply chains in delivery of requirements

25 Implementation issues Prioritising objectives Overcoming resistance/ inertia Boosting subcontractor and labour agency participation Safeguarding quality Difficult areas Managing performance Recognition and reward

26 Outcomes Most numerical targets surpassed (to date): 4706 job starts 602 apprenticeships 496 work placements Diversity outcomes mixed Latterly focus has shifted to: Quality of apprenticeships Supply chain participation

27 Lessons learned Establish clear priorities Employ a variety of (mutually reinforcing) mechanisms especially in difficult areas Use stick as well as carrot : Commercial incentives and/or penalties Know your limits: Systemic weaknesses need to be addressed at sectoral and Government levels

28 Subsequent developments Public Services (Social Value) Act 2012 Early implementation of 2014 EU Procurement Directive (Public Contracts Regulations 2015) Public Procurement Policy Notes 06/15 and 14/15 UK Government target: 3 million new apprentices between 2015 and ,000 in transport infrastructure Recent construction client/ trade union agreements on S&E Impact of Brexit and politics?

29 Measuring Sustainability Performance

30 Innovation on Crossrail

31 Tack så mycket. Har du några frågor? In English please

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